Derek Kaufman resigned as head of global fixed income at Citadel, which managed about $26 billion in single and multistrategy hedge funds as of March 31.
Katie Spring, a Citadel spokeswoman, confirmed that Mr. Kaufman left the company two weeks ago. She declined to provide a reason for Mr. Kaufman’s departure.
A source who spoke on condition of anonymity said the macro-oriented fixed-income portfolio that Mr. Kaufman managed personally lost about $1 billion in 2014.
Citadel has liquidated Mr. Kaufman’s portfolio and will not replace him as head of global fixed income, Ms. Spring said. Instead, his duties will be shared among the remaining 18 members of Citadel’s global fixed-income team. The team will continue to manage Citadel’s other fixed-income strategies, which are used in the firm’s flagship multistrategy hedge funds, Kensington and Wellington. Ms. Spring said Citadel doesn’t break out the size of its fixed-income investments.
Mr. Kaufman could not be reached for information about his future plans.